Location: Greene County, NY | Metro: Greene County, NY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $294,111 | 0.47% | F |
| 3BR | $1,790 | $386,863 | 0.46% | F |
| 4BR | $2,130 | $446,114 | 0.48% | F |
| 5BR | $2,471 | $613,327 | 0.4% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 12485, which encompasses Tannersville, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,390, while the Census ACS data indicates that the market rent is $950. This means there is a $440 difference, representing a 46.3% gap in favor of the FMR.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize their yields. Voucher tenants provide a stable and guaranteed income stream at rates higher than what the open market currently offers. This makes it an attractive investment strategy for those looking to increase their rental income without the volatility associated with traditional market fluctuations.
Tannersville, NY, has a rental rate of 52.5%, indicating a substantial portion of the population relies on renting rather than owning homes. The median home value in the area is $386,452, which is considerably high, suggesting that homeownership might be out of reach for many residents. The median income of $67,165 further supports this notion, as it may not be sufficient to cover the high costs of home ownership.
The disparity between the FMR and the market rent presents an opportunity for landlords to participate in the Section 8 program and receive rental payments that are above the local market average. This not only ensures a steady income but also aligns with the community's need for affordable housing options. Given the economic conditions and the rental dynamics in Tannersville, landlords who accept Section 8 vouchers will be well-compensated, receiving a higher rent payment compared to the typical market rate.
However, it's important to note that participating in the Section 8 program requires compliance with HUD standards and regulations. Landlords must ensure that their properties meet these requirements, which can sometimes involve additional maintenance and management costs. Despite these considerations, the financial benefit of receiving $1,390 per month versus the market rate of $950 makes it a compelling choice for maximizing returns on rental investments in Tannersville, NY.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.